Cultural due diligence and integration of cross-border mergers & acquisitions:
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Format: | Buch |
Sprache: | English |
Veröffentlicht: |
Freiberg
TU Bergakad.
2008
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Schriftenreihe: | Freiberg research papers
2008,3 |
Online-Zugang: | Inhaltsverzeichnis |
Beschreibung: | Literaturverz. S. 170 - 178 |
Beschreibung: | X, 179 S. Ill., graph. Darst. 21 cm |
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Datensatz im Suchindex
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adam_text | Titel: Cultural due diligence and integration of cross-border mergers acquisitions
Autor: Gabriel, Andy
Jahr: 2008
-I-
Contents
List of Tables.............................................................................................vm
List of Figures.............................................................................................ix
List of Squares..........................................................................................x
Introduction.............................................................................................................................01
1. Basic Knowledge on Mergers and Acquisitions.............................04
1.1. Definition of Mergers Acquisitions...........................................................04
1.2. Classification of M A s.......................................................................................05
1.3. Joint Ventures and Strategic Alliances........................................................06
1.4. The Question of Integration and Separation............................................07
1.5. Mergers Acquisitions in an Historical Perspective...........................08
1.5.1. The Development in Germany.....................................................08
1.5.2. The Development in the United States of America..........................10
1.5.3. General Information on the Historical Development of M A s.........14
1.6. Reasons for M A s.........................................................................15
1.6.1. Economical Theories of Mergers and Acquisitions..........................16
1.6.1.1. Vernon s Product Cycle Theory.........................................16
1.6.1.2. The Resource and Capability Theory...................................17
1.6.1.3. The Market for Corporate Control.......................................17
1.6.2. Strategic Reasons for M A s.......................................................18
1.6.2.1 Synergies.......................................................................18
1.6.2.2. Reorganization of the Company.........................................19
1.6.2.3. Market Share and Market Power........................................20
1.6.2.4. Market Entry..................................................................20
1.6.2.5. Self Interest....................................................................21
1.6.2.6. Motivation to Go International..............................................22
1.6.2.7 The Seller s Perspective......................................................22
1.7. Success Rate of M A s......................................................................23
-II-
1.8. Factors of Success and Failure..........................................................................27
1.8.1. Hard Factors....................:........................................................29
1.8.2. Soft Factors...............................................................................30
1.9. Phases of M A s......................................................................................................32
2. Culture...................................................................................................35
2.1 Basic Knowledge on the Concept of Culture.....................................35
2.2. Definition of Culture.......................................................................36
2.3. National Culture.......................................................................................................38
2.3.1. Hall s Model of Culture..................................................................................39
2.3.1.1. Context................................................................................................39
2.3.1.2. Space....................................................................................................40
2.3.1.3. Time.....................................................................................................40
2.3.1.4. Information Flow...............................................................................41
2.3.2. Trompenaars Seven Dimension Model.........................................41
2.3.2.1. Universalism vs. Particularism............................................42
2.3.2.2. Individualism vs. Communitarism..................................................42
2.3.2.3. Affective vs. Neutral..........................................................................43
2.3.2.4. Specific vs. Diffuse............................................................................43
2.3.2.5. Achievement vs. Ascription..............................................................43
2.3.2.6. Attitude towards Time.......................................................................44
2.3.2.7. Attitude towards the Environment...................................................44
2.3.3. Hofstede s Concept of National Culture.....................................................44
2.3.3.1. Collectivism vs. Individualism.........................................................45
2.3.3.2. Power Distance...................................................................................46
2.3.3.3. Masculinity vs. Femininity................................................................46
2.3.3.4. Uncertainty Avoidance......................................................................47
2.3.3.5. Long-Term Orientation vs. Short-Term Orientation.....................47
2.3.4. Final Remarks on National Culture.............................................................48
2.4. Corporate Culture...........................................................................48
2.4.1. Basic Knowledge on Corporate Culture........................................48
2.4.1.1. The Functional Approach.....................................................49
2.4.1.2. The Deterministic Approach..............................................49
2.4.1.3. The Integrative Approach.................................................49
- Ill -
2.4.2. Hofstede s Concept of Corporate Culture..................................................50
2.4.2.1. Process Orientation vs. Result Orientation...............................51
2.4.2.2. Person Orientation vs. Task Orientation.........................................51
2.4.2.3. Organizational Bound vs. Professional.................................51
2.4.2.4. Open Systems vs. Closed Systems......................................52
2.4.2.5. Weak Control vs. Strict Control..........................................52
2.4.2.6. Pragmatic vs. Normative...................................................52
2.4.2.7. Values..........................................................................52
2.4.2.8. Subcultures incorporate Cultures.......................................53
2.4.2.9. Managing Corporate Cultures............................................54
2.4.3. Schein s Concept of Corporate Culture.........................................56
2.4.3.1. Artifacts........................................................................57
2.4.3.1.1. Corporate Objectives..............................................57
2.4.3.1.2. Architecture and Arrangements.................................58
2.4.3.1.3. Organizational Structure..........................................58
2.4.3.1.4. Rituals...............................................................59
2.4.3.1.5. Corporate Stories..................................................59
2.4.3.1.6. Human Resource Policy..........................................60
2.4.3.2. Espoused Beliefs and Values..............................................60
2.4.3.3. Underlying Assumptions...................................................61
2.4.3.3.1. Assumptions about Reality and Truth..........................62
2.4.3.3.2. Assumptions about Time and Space...............................63
2.4.3.3.3. Assumptions about the Human Nature............................63
2.4.3.3.4. Assumptions about the Human Activity........................64
2.4.3.3.5. Assumptions on Human Relationships.........................64
2.4.3.4. Concluding Remarks........................................................65
2.4.4. The Origin and Evolution of Corporate Cultures............................65
2.4.4.1. Gagliardi s Model...........................................................65
2.4.4.2. Stafflage s Model............................................................67
2.4.5. Functions of Corporate Cultures..................................................................68
2.4.5.1. The Coordination Function................................................68
2.4.5.2. The Motivation Function...................................................68
2.4.5.3. The Integration Function..................................................69
2.4.5.4. The Derivative Functions..................................................69
2.4.6. Strong Corporate Cultures..........................................................69
2.4.7. The Interdependency between Corporate Culture and.....................70
Corporate Strategy
2.4.7.1. Approaches about the Interdependency between.....................70
Corporate Culture and Corporate Strategy
2.4.7.2. Further Aspects about the Interdependency between...............71
Corporate Culture and Corporate Strategy
-IV-
2.4.8. Manageability of Corporate Cultures.............................................72
2.4.8.1. Hurdles for Changing Corporate Cultures.............................73
2.4.8.2. Instruments for Changing Corporate Cultures........................74
2.4.8.3. Requirements for Changing Corporate Cultures.....................75
2.5. Cultural Fit or Value in Diversity 76
2.5.1. Degree of Cultural Fit....................................................................76
2.5.2. Research on Cultural Fit.............................................................77
2.5.3. Research on Value-in-Diversity....................................................78
3. Due Diligence........................................................................................80
3.1. Due Diligence in General..................................................................80
3.1.1. Phases of a Due Diligence............................................................80
3.1.2. Types of Due Diligence................................................................81
3.1.3. General Aspects of a Due Diligence...............................................84
3.2. Cultural Due Diligence....................................................................84
3.2.1. The Development of a Cultural Due Diligence Model.......................85
3.2.2. Cultural Self Assessment.............................................................87
3.2.3. Strategy and Corporate Culture...................................................87
3.2.4. Assessment of the Candidates..........................................................88
3.2.5. The Cultural and Strategic Integration Plan and Its........................89
Implementation
3.2.6. Monitoring the Cultural Integration Process.................................9^
4. Assessment of Corporate Cultures 91
4.1. Categorization of Corporate Cultures........................................................91
4.1.1. Trompenaars Corporate Culture Types.......................................9 *
4.1.1.1. The Family Culture..........................................................92
4.1.1.2. The Eiffel Tower Culture..................................................93
4.1.1.3. The Guided Missile Culture..................................................93
4.1.1.4. The Incubator Culture.......................................................9^
4.1.1.5. Final Remarks on Trompenaar s Categorization Model............94
4.1.2. The Categorization of Deal Kennedy..........................................96
4.1.2.1. The Macho Culture..........................................................96
4.1.2.2. The Work Hard/Play Hard Culture.......................................97
4.1.2.3. The Bet-Your Company Culture..........................................98
4.1.2.4. The Process Culture.........................................................98
4.1.2.5. Final Remarks on Deal s Kennedy s Model..................... 98
-V-
4.1.3. The Categorization of Goffee Jones............................................99
4.1.3.1. Sociability.....................................................................99
4.1.3.2. Solidarity.......................................................................99
4.1.3.3. The Networked Culture....................................................100
4.1.3.4. The Mercenary Culture....................................................101
4.1.3.5. The Fragmented Culture.........................................................102
4.1.3.6. The Communal Culture....................................................103
4.1.4. Final Remarks on the Categorization Models.................................104
4.2. General Methods for Assessing Corporate Cultures......................104
4.2.1. Quantitative Methods.................................................................104
4.2.1.1. Surveys.........................................................................104
4.2.1.2. Descriptive Observations..................................................105
4.2.1.3. Advantages and Disadvantages of Quantitative Measurements.. 107
4.2.2. Qualitative Methods....................................................................108
4.2.2.1. Interviews..........................................................................108
4.2.2.2. Group Discussions............................................................108
4.2.2.3. Participative Observations and Simulations...........................109
4.2.2.4. Advantages and Disadvantages of Qualitative Measurements... 109
4.2.2.5. Schein s Clinical Research Model.......................................110
4.3. Appropriate Methods for a Cultural Assessment during M A s.l11
4.3.1. The Measurement of Cultural Dimensions......................................Ill
4.3.2. Assessing Corporate Culture with a Categorization Model...............116
4.3.3. Critical Remarks on Dimension and Categorization Methods...........119
4.3.4. The Qualitative Assessment Model of Driskill Brenton.................120
4.3.5. The Customized Culture Assessment Model of..................................121
Carleton Lineberry
4.3.6 Schein s Clinical Research Model..................................................122
4.3.7. Final Remarks on Assessing Corporate Culture.............................125
5. Cultural Integration...........................................................................127
5.1. Socio-Cultural Integration Models..................................................127
5.1.1. The Model of Nahavandi Malekzadeh........................................127
5.1.1.1. Phases of Acculturation.....................................................127
5.1.1.2. Types of Acculturation.....................................................128
5.1.1.3. The Choice of the Acculturation Type.................................129
5.1.2. The Model of Buono Bowditch.....................................................130
5.1.2.1. Integration Strategies........................................................130
5.1.2.2. General Remarks.............................................................131
-VI-
5.1.3. The Model of Cartwright Cooper..............................................132
5.1.3.1. Types of Corporate Culture...............................................132
5.1.3.2. Transaction Types...........................................................133
5.2. Traps and Problems of Cultural Integration..................................135
5.2.1. Traps.......................................................................................135
5.2.2. Personal Stress..........................................................................137
5.2.3. Learning Anxiety.......................................................................138
5.3. Stages of Cultural Integration.........................................................138
5.3.1. Lewin s Three Phase Model of Change.........................................138
5.3.2. Grube s Topfer s Four Stages of Cultural Integration..................139
5.3.3. Phases of Social-Physiological Reactions during an M A.................140
5.4. Measures for a Successful Cultural Integration.............................142
5.4.1. Overcoming Learning Anxiety.....................................................142
5.4.2. Leadership................................................................................143
5.4.3. Involvement of the Employees and Team Building.........................144
5.4.4. Building Trust............................................................................145
5.4.5. Communication..........................................................................146
5.4.5.1. Targets and Instruments of Communication..........................146
5.4.5.2. FurtheT Aspects of Communication........................................147
5.4.6. Intercultural Learning................................................................149
5.4.6.1. Levels and Hurdles of Intercultural Learning.........................149
5.4.6.2. Seminars and Workshops for Intercultural Learning................150
5.5. Comprehensive Ideas on Cultural Integration...............................151
5.5.1. Cultural Integration according to Buono Bowditch............................151
5.5.2 Driskill s Brenton s Practical Suggestions...........................................152
5.5.3. Goffee s Jones Methods for Changing Corporate Cultures..........153
5.5.3.1. Enhancement of Sociability................................................154
5.5.3.2. Reduction of Sociability....................................................155
5.5.3.3. Enhancement of Solidarity................................................155
5.5.3.4. Reduction of Solidarity........................................................156
5.6. Final Remarks..................................................................................156
-VII-
6. Monitoring Cultural Integration.....................................................................158
6.1. The Balanced Scorecard.......................................................................................158
6.1.1. The Different Perspectives of a Balanced Scorecard...............................158
6.1.2. The Interdependency of the Perspectives of a Balanced Scorecard.....160
6.2. Monitoring the Cultural Integration Process............................................162
6.2.1. Basic Ideas on Monitoring the Cultural Integration Process.................162
6.2.2 Indicators and Measurement Methods for the Cultural Integration... 164
Process
6.2.3. Final Remarks...................................................................................................167
Conclusion.................................................................................................168
References.................................................................................................no
About the Author..................................................................................... 19
Abstract...................................................................................................... 19
- VIII -
List of Tables
Table 1.1: Main Facts on the Five M A Waves in the United States...........................13
Table 1.2: Motivation for M A Transactions and their Significance..........................23
Table 1.3: Overview over Empirical Studies onM A s..........................................25
Table 4.1: Characteristics of Trompenaar s Corporate Culture..................................95
Table 4.2: The Corporate Culture Questionnaire..................................................................106
Table 4.3: Dimensions and Indicators for Corporate Cultures...................................112
Table 4.4: Cultural Profile according to Strohmer..................................................115
Table 4.5: Observational Checklist for the Indicator Time .....................................117
Table 4.6 Identification of Negative and Positive Forms of Networked Cultures..........118
Table 4.7: Cultural Domains and their Descriptions................................................122
Table 5.1: Activities that Contribute to a Culture of Trust........................................145
-IX-
List of Figures
Figure 1.1: Merger Activities in Germany, 1951 to 2002..........................................10
Figure 1.2: Merger Activities in the USA, 1851 -2003..........................................................11
Figure 1.3: Defense Mechanisms on Hostile Acquisitions and their Impact on the.........13
Target Company s Market Value
Figure 1.4: Success Factors of M A s.......................................................................................28
Figure 1.5: Change Fields during an M A............................................................31
Figure 1.6: The Three Typical Phases of an M A...................................................33
Figure 2.1: Layers of a Cultural View...................................................................36
Figure 2.2: The Onion Diagram of Culture...............................................................................38
Figure 2.3: Cultural Levels according to Schein......................................................56
Figure 2.4: Cultural Change as an Incremental Process.............................................67
Figure 2.5: Instruments for Changing Corporate Cultures.........................................75
Figure 3.1: Parts and Structure of a Due Diligence..................................................82
Figure 3.2: The Cultural Due Diligence Model.......................................................86
Figure 4.1: Types of Corporate Cultures according to Trompennaars..............................92
Figure 4.2: National Patterns of Corporate Culture..................................................96
Figure 4.3: Types of Corporate Cultures according to Deal Kennedy........................97
Figure 4.4: Categorization of Corporate Cultures according to Goffee Jones...............100
Figure 4.5: Profile of a Corporate or National Culture Illustrated in a Radar Chart..........116
Figure 5.1: The Acculturation Model....................................................................129
Figure 5.2: The Model of Cultural Compatibility.....................................................132
Figure 5.3: Stages of Cultural Integration..............................................................139
Figure 6.1: Example for the Cause and Effect Chain of a Balanced Scorecard....................161
Figure 6.2: Example for the Balanced Scorecard......................................................................162
Figure 6.3: The Post Merger Integration Balanced Scorecard................................................163
-X-
List of Squares
Square 2.1: Different Definitions of Culture..............................................................................37
Square 2.2: Managing and Changing Corporate Cultures...........................................55
Square 4.2: Critical Incident Analysis for Networked Cultures...................................119
Square 5.1: Example for a Cultural Takeover..........................................................136
|
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spelling | Gabriel, Andy Verfasser aut Cultural due diligence and integration of cross-border mergers & acquisitions Andy Gabriel Freiberg TU Bergakad. 2008 X, 179 S. Ill., graph. Darst. 21 cm txt rdacontent n rdamedia nc rdacarrier Freiberg research papers 2008,3 Literaturverz. S. 170 - 178 Freiberg research papers 2008,3 (DE-604)BV023034067 2008,3 HBZ Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=017118168&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
spellingShingle | Gabriel, Andy Cultural due diligence and integration of cross-border mergers & acquisitions Freiberg research papers |
title | Cultural due diligence and integration of cross-border mergers & acquisitions |
title_auth | Cultural due diligence and integration of cross-border mergers & acquisitions |
title_exact_search | Cultural due diligence and integration of cross-border mergers & acquisitions |
title_full | Cultural due diligence and integration of cross-border mergers & acquisitions Andy Gabriel |
title_fullStr | Cultural due diligence and integration of cross-border mergers & acquisitions Andy Gabriel |
title_full_unstemmed | Cultural due diligence and integration of cross-border mergers & acquisitions Andy Gabriel |
title_short | Cultural due diligence and integration of cross-border mergers & acquisitions |
title_sort | cultural due diligence and integration of cross border mergers acquisitions |
url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=017118168&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
volume_link | (DE-604)BV023034067 |
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